Next Tuesday, Dana Point council members will decide whether to reform the city employee pension plan.
Since Dana Point was incorporated in 1989, the city has paid the employee contribution portion of pensions, which is 7 percent of an employee's salary. The proposed negotiation would take away the city's contribution.
The plan is to phase in the pension sharing program. As of October 1, 2015, the City will no longer be paying any of the employees’ share of their pension costs.
New guidelines from the state governor's office set a 50/50 split pension payment between governments and employees as the new state standard by 2018.
As a result of the changes, staff is recommending employees hired after Jan. 1, 2013 receive a 2.9 percent salary increase effective Oct. 1 and another 2.9% salary increase effective Oct. 1, 2015. For employees hired prior to Jan. 1, 2013, staff recommends a 6.9 percent salary increase on Oct. 1, followed by a 5.9 percent increase in Oct. 2015.
City employees have not received a performance increase since Oct. 2008 for economic reasons.
Also in the new contract, employees would receive time-and-a-half pay for every 15 minutes worked outside of normal working hours. This would include phone calls outside normal work hours.
The contract also adds a new flexible leave day per year for each city employee.
If approved, the changes will cost the city an estimated $49,500 in fiscal year 2015 and another $112,500 in fiscal year 2016.